15-2? {Internal control evaluation - cash disbursements) Management has requested a review of internal control over cash disbursements for parts and supplies purchased at manufacturing plants. Cash disbursements are centrally processed corporate headquarters based on disbursement vouchers prepared and approved at the manufacturing plant purchases parts and supplies for its own production needs. In response to management's request, a thorough evalutation of internal control over disbursements for manufacturing plant purchase of parts and supplies is being planned. As a preliminary step in planning the engagement. each plant manager has been requested to provide a written description of his or her plant's procedures for processing disbursement vouchers for parts and supplies. Presented below are someexcerpts from one of the written descriptions. 1 The purchasing department acts on purchase requisitions issued by the store department. 2 A computer system generates prenumbered purchase orders based on information submitted by buyers in purchasing. 3 Receiving has complete access to purchase order information in the computer. 4 When goods are received, the receiving depatment logs the shipment in the computer by indicating that the purchase order was received and forwards this electronically to accounts payable. 5 When the vendor invoice is received, it is entered into the computer and matched electronically with purchase order and receiving information. Discrepancies are printed on an exception report for followup by accounts payable personnel. 5 The computer checks the clerical acuracy of information on vendor invoices. Discrepencies are printed on an exception report for followup by accounts payable personnel. 7' A preunmbered disbursement is prepared and forwarded along with supporting documentation to the plant controller, who reviews and approves the voucher. 8 Supporting documents are retuned to accounts payable for ling, and approved disbursement vouchers are forwarded to corporate headquarters for payment. 9 A report listing checks issued by corporate headquarters is received and promptly filed by accounts payable. Required For each of the disbursement system procedures listed above, state whether the procedure is consistant with good internal contra] and describe how each procedure strengthens or weakens internal control